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Cephalon Fined $425 Million For Illegally Promoting Its Drugs Like ?Lollipops?

By Ethisphere.com

Cephalon agreed to pay $425 million on Monday in order to settle criminal and civil charges filed against the company for the way it marketed three of its drugs - Actiq (a painkiller), Gabitril (an epilepsy drug) and Provigil (a sleeping drug), according to a story by Reuters, and published by The Guardian.

As part of the settlement, the company agreed to plead guilty to a misdemeanor violation of the U.S. Food, Drug and Cosmetic Act. Who knew admitting to a single misdemeanor would be so costly?

From the article:

“These are potentially harmful drugs that were being peddled as if they were, in the case of Actiq, actual lollipops instead of a potent pain medication intended for a specific class of patients,” said acting United States Attorney Laurie Magid in a statement.

The sum is broken down into two parts. The first part, $50 million, will go to resolve criminal charges, according to the story, and the second part, $375 million, will take care of a civil complaint against the company.

That civil complaint was first brought about by a former sales rep who, on the government’s request, agreed to wear a wire to a company sales conference. Three other individuals (two of them also former Cephalon sales reps), later filed suit as well. The four whistle-blowers will share $46.5 million from the settlement.

Full post as published by Ethisphere Blog - Good. Smart. Business. Profit. on September 30, 2008 (boomark / email).